This page has been archived and commenting is disabled.
US Treasury Bloodbath Is Back: 30 Year Passes 4.50%, As 10 Year Prepares To Take Out 3.40%
Not much to say here: QE3 is in the works, as once the equity rally fizzles, mortgages are at 5.5%, and Americans realize that home prices just dropped by 15%, there will be a lot of very confused stares.
10 Year
30 Year:
The move is not all that surprising: BofA's Prya Misra has just released her Rates Forecast for 2011: she see the 10 Year at 4% and the 30 Year at 4.65%.
»
- 14997 reads
- Printer-friendly version
- Send to friend
- advertisements -
The deflation advocates are either infiltrated agents or clowns.
I think most of them, such as Roubini, who is praised by all the international medias, are here to drive investors out of PMs while they are bought by the oligarchy, who is - contrary to most people - actively preparing to the death of current fiat monies.
SOOOOO........... if the Bernank is buying treasuries via POMO to keep interest rates down how come the 10's and 30's are tanking?
He forgot to metion the little thing called 'equilbrium decimation' or in other words, the law of dimishing returns. He's now reached the point where POMO is counter productive. More POMO= HIGHER yields. At the same time, this will crush the EU...
That question is best posed to The Ben Bernank, himself.
He's either an incredibly wicked liar, or incredibly foolish bankster.
He apparently left a note as to how/where he can be contacted. It reads:
"Gone fishin'. Be back soon."
However, a few learned men, who wish to remain anonymous, claim his contact info is really as follows:
New Court, Saint Swithin's Lane
London EC4P 4DU
United Kingdom
Telephone: +44 171 280 5000
Fax: +44 171 929 1643
Bernanke is SO pwned right now.
Better buy a house and quick!
Once-in-a-century lows. Nothing will get cheaper.
WE bottomed long ago.
You first! Go buy up those mortgages, Skippy.
"Better buy a house and quick!
Once-in-a-century lows. Nothing will get cheaper.
WE bottomed long ago."
Okay, you go first, and then we will see if you can flip it to me for a profit.
Fair deal?
If you can use leverage, max it out and buy homes and RE hand over fist.
I really, really wish you were right. Separating wheat from chaff at this point; smells like paradigm change is coming. Too many pivotal events economic, political and societal. No, my children will deal with new paradigms no matter how much I would like to believe your pollyanish cartoon.
Housing prices have way more lower to go before the bottom.. Just wait till rates are at 7-18%.. Paul Volcker sTyLe!! WOOT!
rates will never get the high. NEVER!
Some mighty crude trollin', that.
Only a Sith-Lord deals in absolutes! Never is a long time, friend.
It's the risk premium adjustment.. creditors are waking up and want to be paid across all
the credit mkts. Banks are charging 19% for CC's.. why shouldn't other rates go up?
the bond market is crashing, it's a falling knife. Look up ZROZ and MUB. Institutional money is leaving bonds and going into equities, they have no where else to go. If they want to leave bonds (due to the Fed losing control of interest rates) they have to earn money somewhere, ie stocks. This is not based on fundamentals at all, it's all money flows.
Institutionals going all-in on overbought stocks as a last resort? Final stage of the implosion curve confirmed then.
If you trade futures you can stay ahead of inflation with the leverage. That is if you can make money doing it. The trick now is to trade with this knowledge in mind. The markets are going up. Stay long until each new high is exceeded by several points and then you can short for a small profit. Be sure to go long again with even just a 10 point pullback. May drop more but Ben will save you if you wait a few hours. Nothing can keep him down.
Bernank decided to mess with the Bond G.ds.. he may not survive this. These are Institutional Trades.. Large banks and CB's for the most part.
Good point re the CB`S. The ECB would not be the only candidate to be selling in order to make more local purchases,
so if 30 yr yields are going up - why isn't this bad for stocks? I thought the bonds market represented the latest and greatest bubble formation? what am I missing?
some time-lag, I'm guessing
Bond traders do not worry too much about what stocks are doing - the reverse will not be true for long.
Exactly - the blood in the water and flailing around ought to attract a bond shark or seven, or do they hang back and wait thinking the kill gets easier with time? Or is it first come, first serve? And can't TD just call them and invite them - like dinner and show (with a certain "implied guarantee" for early seating?
<sarcasm on>